§ 7-58-104 — Nature of limited cooperative association

(1) A limited
cooperative association organized under this article is an autonomous,
unincorporated association of persons united to meet their mutual interests
through a jointly owned enterprise primarily controlled by those persons, the
patronage of which is carried on for the mutual benefit of the patron members and
that permits combining:

(a) Ownership, financing, and receipt of benefits by the patron members for
whose patronage the association is formed; and

(b) Separate investments in the association by investor members who invest
in the limited cooperative association and may receive returns on their investments
and a share of control.

(2) The fact that a limited cooperative association does not have more than
one of the characteristics described in paragraph (a) of subsection (1) of this section
or any of the characteristics described in paragraph (b) of subsection (1) of this
section does not alone prevent the association from being formed under and
governed by this article, nor does it alone provide a basis for an action against the
association or a member.

(3) The relations between a limited cooperative association and its members
are consensual and contractual. Unless required, limited, or prohibited by this
article or other applicable law, the articles and bylaws of an association may
provide for any matter concerning the relations among the members of the
association and between the members and the association, the activities of the
association, and the conduct of its activities.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 764, � 1, effective April 2, 2012.